Question

Seman Samudhi obtained a $2,000 loan to purchase a computer. His interest rate is 7% ordinary interest for 108 days. How much interest does he owe and what is the maturity value of the loan?

Answer 1

interest= principle*rate*time/100
(2000*7%*108/365)/100=41.424
total interest is 41.424. and maturity value is 2000+41.424=2041.424